This Diwali, fireworks will fly as Amazon India-Flipkart clash

Till now, Amazon India, which was launched in 2013, has been able to notch highest seller e-commerce spot in the last two months. It’s a race that has left its nearest competitor Flipkart behind, and the stage is set for a mega showdown this festive season.

"E-commerce is not a business but a category play. It sits on the business and expands your reach and visibility. You can be completely global and need to have service, price, delivery and range to succeed,” said K Radhakrishnan, co-founder, Grocermax.com.

What has worked for Amazon India?

- Amazon India has the highest vendor base at over one lakh vendors, which promises more variety with faster delivery.

- Generally, e-commerce companies demand higher sales on the festive season of Diwali, but Amazon India's Great Indian Sale contributed in driving up their sales.

- Marketing blitzkrieg is another factor behind higher consumer recall for Amazon India, and Amazon CEO Jeff Bezos has announced $3 billion investment in the Indian arm.

- Also, at a time when the e-commerce space is reeling under a funding crunch, the global parent arm ensures deeper pockets for Amazon India for higher discounts and more variety.

- Amazon India prime has been a hit, promising one-day free delivery guarantee to members.

How is Flipkart fighting back?

While Flipkart has been the favourite poster-boy of the Indian e-commerce space, it has lost steam with several high-profile exits from its core team.

Morgan Stanley Institutional Fund, one of the Flipkart investors, has marked down the estimate of the company’s valuation for the third consecutive time in the past six months, implying Flipkart is now valued at $9 billion approximately.

- Flipkart is reportedly pre-poning the rollout of its flagship Big Billion Day sale, starting early next month.

- Its focus will be the fashion segment after the Myntra and Jabong acquisitions.

- Flexible financing option to attract customers with easy loan options and phone payments.

Also read: Does Amazon have courage to pull off a 30-hour work week?